Mortgage vs HELOC
I may purchase a home downstate (Indiana). My present home is owned with no mortgage.
My bank (Chase) said they do not do HELOC – more expensive for the buyer. Hey want to do a mortgage on the new property until I sell my present home and pay off the mortgage. They pay all closing costs on the new purchase.
I’m having a hard time processing this. They are in the business of making money. It seems they would make more with a HELOC. I also don’t understand my actual costs in getting the new mortgage. Any help would be appreciated.
Terry Says
So you need a bit of advice in comparing costs on a new mortgage. It’s cleaner to do the new mortgage and then when — and if — you sell your existing home, you can always pay off the new mortgage.
Contact my friend Leslie Struthers at Rate.com. Her email is Leslie@rate.com. She can steer you in the right direction of an affordable mortgage on the new home — assuming you qualify based on income.
I just want to warn you about being caught owning two homes, in case the market changes. Even with only one mortgage, you still have to pay property taxes and insurance on BOTH homes.
